BY
TTG Staff

Holiday spending steady despite dip in confidence

Consumer confidence has declined three points between the second and third quarter, although spending on holidays has remained steady overall.

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"The trend towards fluctuating leisure spending suggests that the previously resilient consumer is gradually becoming more aware of the wider economic uncertainty”

Deloitte’s A View of the UK Leisure Consumer – Q3 2018 report found that despite a decline in consumer confidence in recent months, it was on a par with this time last year.

“However, the trend towards fluctuating leisure spending suggests that the previously resilient consumer is gradually becoming more aware of the wider economic uncertainty,” read the report.

Compared to a “very positive Q2”, leisure spending declined in eight out of the 11 categories studied.

While spending on eating and drinking out was particularly affected by the extended period of summer weather, spending on holidays and short breaks held up against Q2, the report found. Compared to last quarter, consumers reported spending less on things such as eating out and drinking in pubs and coffee shops.

But there was no change in spending on long holidays and spending on short breaks increased one point.

Year-on-year, spending on short breaks increased by one point and on long holidays by two points.

The over-55s particularly increased their spending on big-ticket items such as holidays.

Looking ahead to 2019, consumers are expected to spend less on short holidays – down two points – but long holidays will likely see a rise in net spending especially as younger consumers (18-24 year olds) focus their spending on “big experiences”, Deloitte concluded.